Gifting your social values: explore socially responsible investing with Brandon Cabaniss.This may sound strange coming from an article in New Life Journal, but have you been thinking about your financial investments? The world of investing can feel like a sell-out to big corporations. What sweat shops are you supporting? What gas-guzzling SUV-producing car companies are you helping to line their pockets? Many of us do invest, but who has the time to really fred out where that money is going? When you make a contribution to your 401k, retirement plan, or savings portfolio and invest in a mutual fund, are you aware of the products, services, and business practices of those companies comprising the fund? When donating money to your favorite charity, how do you know the money is going directly to the beneficiaries of the cause and not improving balance sheets of companies you don't want to support? When you donate to a foundation, are the investments of that foundation being prudently selected with regard to the beliefs of the organization? Although social consciousness was a movement that began in the 1960s and 1970s, corporate responsibility and socially responsible investing Socially responsible investing describes an investment strategy which combines the intentions to maximize both financial return and social good. In general, socially responsible investors favor corporate practices which are environmentally responsible, support workplace diversity, are present concerns. In fact, we are all very aware of the unethical unethical said of conduct not conforming with professional ethics. stories headlining the business and philanthropic journals across the country, educating consumers, investors, and benefactors alike. Socially responsible investing has become popular over the years because people want to affirm their values while pursuing their financial goals. These values may include a desire to support companies whose policies and practices promote the well being of society, animals, and the environment. How can you make sure that your money is being invested responsibly to benefit you, your heirs, and the world at large? A recent study by the Social Investment Forum showed that nearly $1 out of every $10 under professional management in the US (or $2.29 Trillion) is involved in SRI, up 258% from 1995. (Statistic came from 2005 report on Socially Responsible Investing Trends in the US. The Socially Responsible Forum, 2005, p. iv.) How do you get involved and choose the right investments? First, decide what type of investment fits the strategy and goal you have set within your financial plan. Then, align your values with these investments. What social issues really get to your soul? Qualities you may want to look for when choosing mutual funds would include environmental practices, community involvement, employee diversity, labor conditions, and/or overseas business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . You may want funds that exclude certain behaviors altogether. These controversial business practices include child labor child labor, use of the young as workers in factories, farms, and mines. Child labor was first recognized as a social problem with the introduction of the factory system in late 18th-century Great Britain. practices, tobacco, alcohol, gambling, military, weapons, and nuclear power. This information isn't always readily available in a prospectus or on regular mutual fund comparison websites. Socialfunds.com is the largest personal financial site on the Internet that gives you SRI mutual fund performance data, the latest SRI news and companies screened, SRI shareholder resolutions, and information on community investing. You can help rebuild or build communities by channeling a certain amount of credit to those that are not well served by traditional local council governments. This may create jobs, build homes, and financial community facilities. To find out more about Community investing, visit www.communityinvest.org Just as with your personal investing, when you make a contribution to a foundation, the money is invested and the income and/or growth is given to support the needs of the charity. When making a donation to a foundation, ask for a copy of the Investment Policy Statement of the foundation. An Investment Policy Statement outlines the responsibilities of the foundation board, the policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental to follow when choosing the investments to be held for the benefit of the charitable organization This article is about charitable organizations. For other uses of the word charity, see Charity. A charitable organization (also known as a charity) is an organization with charitable purposes only. , and the investment options for the account. If you have certain standards set around a particular investment, fred out if your standards are being held by the foundation you would like to support. Does the foundation advocate the greater good of the organization? There is a wide range of available socially responsible investments. Consumers are able to be competitive with their choices. Because these investments are exposed to less risk and superior management, investing in companies with good social and environmental performance may also offer you better long-term investment performance. Investing your personal savings takes some reflection. When you are investing for capital growth in your retirement plan or taxable account, consider funds that help contribute to the betterment bet·ter·ment n. 1. An improvement over what has been the case: financial betterment. 2. Law An improvement beyond normal upkeep and repair that adds to the value of real property. of society. Each socially responsible fund determines its own particular focus and criteria for investment. Calvert Mutual Fund Company (www.calvert.com) is an example of an investment firm offering many funds that screen companies for developing new sources of energy, pursuing progressive employment programs, and supporting environmental protection. They also omit o·mit tr.v. o·mit·ted, o·mit·ting, o·mits 1. To fail to include or mention; leave out: omit a word. 2. a. To pass over; neglect. b. companies that have significant interests in countries with repressive or racist governments. If these issues are important to you, make sure you talk to an advisor that has access to tools to screen what you own. An advisor can scrutinize scru·ti·nize tr.v. scru·ti·nized, scru·ti·niz·ing, scru·ti·niz·es To examine or observe with great care; inspect critically. scru your portfolio and look at each individual holding of your mutual funds. He or she can tell you what these firms are involved in. You may be an environmentalist environmentalist a person with an interest and knowledge about the interaction of humans and animals with the environment. who drives a hybrid vehicle For other types of "Hybrid Transportation", see . A hybrid vehicle (HV) is a vehicle that uses two or more distinct power sources to propel the vehicle such as: Limiting one's investment alternatives to securities of firms whose products or actions are considered socially acceptable. For example, an investment manager might decide to eliminate from consideration the securities of all firms engaged : www.coopamerica.org/socialinvesting. Talk to your financial planner Financial Planner A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. about how to incorporate SRI managers into your investment portfolio or charitable foundation. The dual benefit--personal and financial--will make you realize you are indeed putting your money where your mouth is. Investment Terms Mutual fund--a manage portfolio or basket of stock Prospectus--literature detailing the "ins and outs ins and outs pl.n. 1. The intricate details of a situation, decision, or process. 2. The windings of a road or path. " of stock or mutual fund investment Social investment Forum--a national nonprofit membership organization promoting the concept, practice and growth of socially responsible investing. SRI--Socially Responsible Investing This information is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results. Raymond James  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . & Associates, Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with an appropriate professional Brandon Cabaniss is a Certified Financial Planner Certified Financial Planner (CFP) A person who has passed examinations accredited by the Certified Financial Planner Board of Standards, showing that the person is able to manage a client's banking, estate, insurance, investment, and tax affairs. [TM] with eight years of experience in the investment business. She lives in Greenville, SC and works with a Team of advisors named "The Williams Group of Raymond James & Associates." She spent three years as an expatriate Expatriate An employee who is a U.S. citizen living and working in a foreign country. in Munich, Germany and enjoys cooking, hiking, and traveling in her free time. She can be reached at 864-255-4574. |
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